Treasury has lowered its growth forecasts from 3.4 per cent to 3 per cent for 2013 and warned of cuts to government revenue as the European crisis rumbles on.
Right. So just to recap: Treasury made these very optimistic growth predictions in the 2011 budget, and everyone said they were delusional. But Treasury stood by their forecasts, and a month out from the election they repeated their insanely optimistic outlook in the PREFU.
The government and opposition parties based all of their fiscal policies on the Treasury forecasts. Both main parties claimed they’d get the country back into surplus in a few years, because of all the additional revenue from all that economic growth. Jobs weren’t a big topic of debate in this election, because Treasury promised us that all the growth would create 170,000 new jobs!
Now here we are, just over a week after the election and whaddya know? Treasury has announced they were too optimistic. Growth is going to be less than they said it would a month ago – even though nothing substantive has changed since then. The European crisis didn’t just emerge on Sunday the 27th.
This looks an awful lot like a government department conspiring to defraud the country during an election campaign. If it ain’t that then it’s gross incompetence. But because they screwed up/lied to us in a way that advantages the main political parties, no one gets held accountable and nothing changes. The Prime Minister is relaxed.